In Luke's retirement scenario, what is the maximum lump sum the employer's scheme can provide upon retirement at NRA 65 given a retained lump sum of €25,000?

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Multiple Choice

In Luke's retirement scenario, what is the maximum lump sum the employer's scheme can provide upon retirement at NRA 65 given a retained lump sum of €25,000?

The amount you can take as a lump sum from the employer’s scheme at retirement, when there is a retained lump sum, is determined by a fixed multiplier applied to the retained lump sum. In Luke’s case, the multiplier is 2.6. So the maximum total lump sum the scheme can provide is 25,000 × 2.6 = 65,000. This means the scheme can add up to 40,000 on top of the retained lump sum, giving a total lump sum of 65,000 at retirement.

The amount you can take as a lump sum from the employer’s scheme at retirement, when there is a retained lump sum, is determined by a fixed multiplier applied to the retained lump sum. In Luke’s case, the multiplier is 2.6. So the maximum total lump sum the scheme can provide is 25,000 × 2.6 = 65,000. This means the scheme can add up to 40,000 on top of the retained lump sum, giving a total lump sum of 65,000 at retirement.

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